Credit Card use while in Ch. 7.

[Logan]

I used a credit card the other day that was a 0 balance when filed so I still have it. Anyone else have any experience with this? It is a department store card and hasn't been used in a few years but wanted to start 'building' credit back asap and I figure a good way is to use available credit that I still have.

Any thoughts? And yes I will be paying it off when I get the bill...I needed clothes....

Logan

[HHM]

Strictly speaking, you are not supposed to use any credit until after your BK is discharged.

Quite frankly, there really isn't much you can "do" to improve your credit after BK except allow time to pass. The 2 things that are most helpful to fixing credit are this
1. Make sure all accounts are being reported correctly on your CRA's
2. And simply allow time to takes its course.

The effects of BK on your CRA's is mostly gone after 2 years so long as you don't do anything stupid (i.e. open 6 credit cards), etc.

[Boscoe]

You are about to be jumped on by others in this site, so I will give you the first warning....

You are NOT suppposed to be using credit while in a chapter 7 - your case can be dismissed.....

I assume there are a few bills you are not paying now that you are in the ch 7, so you should be using this money to buy clothes and other necessities in either cash or debit cards....no credit is allowed!

You can wait (and need to) until the discharge to use that card. You are playing with fire and better hope no one finds out.....

[Logan]

You can jump on my case all you want but I'm not worried about my case being dismissed.

[Boscoe]

don't get too cocky, never know when they will ask for more data.

You should be ok, but you post here to get others' experiences and this is one of them.

[guzzie]

your first mistake......good luck....

[lrprn]

I understand you did what you thought was best, Logan. What worries me is if you've filed, why you don't have enough disposable income now that you aren't paying your unsecured creditors to buy some clothes? Did you have some unexpected expenses after filing that put you in the red?

[sofarindebt]

I wouldn't worry about it.

my husband and I both got credit cards right after we filed. To start rebuilding our credit. I don't think the trustee has that much time on their hands to look at our credit reports when we are a below median no asset case.

Besides, you could always say you never knew about that rule and wanted to start rebuilding your credit.